Anyone who has common knowledge of real estate please ease my wondering mind :-)?

Question

Ok, so what's the deal with these foreclosures? I've always been interested in real estate, but the economy is so bad I wouldn't even waste my money trying to get my license right now, but I saw a commercial today saying that you can own a foreclosed home for only $100 a month! Is this too good to be true? I work a dead end job and could afford 3 foreclosed homes! So what's the deal?

Answer 1

Here's the deal:

No, you're not going to be able to find a foreclosed home for $100 a month.

In fact, if you're interested in buying foreclosures, it doesn't even work that way. You pay a certain price--$30,000, $70,000, $200,000...whatever--and then you get financing for it. There's no structure or process set up (at least that I know about, and I'm a Realtor and an investor) that allows you to buy one of those properties for $x per month.

If you're interested in real estate, stop watching commercials. Join a real estate investment group in your area--go to www.creonline.com, then select "Real Estate Investment Clubs" on the left-hand side to find your state. Then attend some meetings and learn about real estate. But keep your credit cards and checkbook in your pocket; don't initially buy anything they're selling, either.

Or...get your license. At least study for it and take the test. That process will only cost a few hundred dollars. (If you decide to become an active agent, you're looking at thousands of dollars.) You'll learn an awful lot about real estate (though, not about foreclosures or investing).

It's a great time to invest in real estate; there are great deals out there. But you really have to know what you're doing. And that'll require a bit of money. Not a lot, though.

Meanwhile, forget about the $100 a month foreclosures.

Hope that helps.

Answer 2

$100 a month sounds interesting , though not complete.

You need to find:

1) location of property

2) how much unpaid taxes on the property

3) the condition of the property

4) whether you want to live in it or use it as an investment to rent out till the market comes back.

Thats the deal. "let the buyer beware". You may find a diamond in the rough.

Answer 3

Don't pay any attention to those commercials.  Buying a home, even a foreclosure, is not easy.  In fact, a foreclosure is even more difficult to purchase because you are dealing directly with the bank that owns it and is usually in bad shape because it has not been taken care of for a long time.